Pennsylvania - New Jersey Law Blog

Stark & Stark Shareholder Presents Seminar to Community Associations Institute - Pennsylvania & Delaware Valley Chapters

rdeluca@stark-stark.com (Stark & Stark) — Tue, 24 Mar 2009 08:05:44 -0500

David J. Byrne, Shareholder in Stark & Stark's Community Association group, presented materials related to Community Associations, and their rights and obligations in relation to the various fair housing statutes, ordinances and/or regulations that are applicable to them. The presentation was held at the Hopkinson House, on Washington Square, in Philadelphia on Friday, March 20, 2009.

Mr. Byrne focused his presentation on the United States Fair Housing Act, Pennsylvania's Human Relations Act and Philadelphia's Fair Practices Ordinance, and their applicability to Philadelphia's community associations. Mr. Byrne discussed these laws both in connection to a community association's obligations to its owners, and to a community association's obligations to any tenants it maintains in any units owned or controlled by it.

You can view a copy of the relevant portions of the United States Fair Housing Act, Pennsylvania's Human Relations Act and/or Philadelphia's Fair Practices Ordinance here.

Stark & Stark Shareholder Presents Seminar to Community Associations Institute - Pennsylvania & Delaware Valley Chapters

rdeluca@stark-stark.com (Stark & Stark) — Wed, 15 Oct 2008 08:09:44 -0500

David J. Byrne, Shareholder in Stark & Stark's Community Association group, presented materials related to Community Associations "going green" at the CAI Pennsylvania and Delaware Valley Chapter's Urban Issues seminar, held at the Comcast Building in Philadelphia, Pennsylvania on Friday, October 10, 2008.

Mr. Byrne focused his presentation on the legal issues surrounding the concept of "going green", including the fiduciary duties of board member when facing owner green-related modifications, and when Associations themselves consider green-related changes. Mr. Byrne also discussed the flexibility Associations and managers have when trying to minimize the amount of paper used. Mr. Byrne also discussed the law in Pennsylvania and other states, to illustrate the legislative trend toward "going green" and ensuring Associations do not stand in the way.

You can view a copy of the power point presentation from this seminar here.

Pennsylvania Legislature Sends House Bill 2295 to Governor Rendell

cflorio@stark-stark.com (A. Christopher Florio) — Thu, 03 Jul 2008 15:22:12 -0500

As a follow up to a recent post the Pennsylvania House of Representatives, on a concurring vote, approved House Bill 2295 yesterday (199-0). The House originally passed HB 2295 on June 11, 2008. After the House originally approved the Bill in June, it was then sent to the Senate. The Senate approved the Bill, but also added additional language to the Bill in conjunction with Senate Bill 963.

SB 963 amends the Uniform Condominium Act by furthering the abilities of older communities to amend their declaration of covenants in order to better serve and provide for the members of their communities. The amended HB 2295 passed the senate on Monday June 30, 2008, and after having passed for the second time in the House yesterday, will now move to Governor Rendell for final approval.

The Community Associations Institute of Pennsylvania’s Legislative Action Committee (link to position papers) has long supported HB 2295, as well as SB 963. HB 2295 is a very important and positive piece of legislation which will enable associations to provide the highest level of service to unit owners.

Pennsylvania's House Bill 2295 Moves to Senate

cflorio@stark-stark.com (A. Christopher Florio) — Thu, 26 Jun 2008 08:20:30 -0500

On June 11, 2008 the Pennsylvania House of Representatives passed House Bill 2295, which would amend Section 3315 of Pennsylvania’s Uniform Condominium Act (The Act). HB 2295 will restore original language, which had been removed from The Act in 2004. In 2004 the amendment to The Act reduced the rights of an association to collect unpaid assessments after a judicial sale of unit, to only being able to collect unpaid assessments in cases ending in foreclosure.

HB 2295 will provide a condominium association with a “super-priority” lien for assessments payable by unit owners. This means that an association will be able to collect up to six months of unpaid assessments from unit owners in the event of a judicial sale, and/or foreclosure of a unit. The money collected from the assessments enable an association to provide unit owners with maintenance services required in accordance with the association’s contracts and statutory responsibilities.

Takingaway the right of an association to collect unpaid assessments after the judicial sale of a unit will only negatively affect the association and it’s unit owners. Reinstating the original language used prior to the amendment of The Act in 2004 will enable community associations to continually provide the level of service unit owners have come to expect.

Collecting Unpaid Fees and Assessments

rdeluca@stark-stark.com (Stark & Stark) — Wed, 04 Jun 2008 08:57:05 -0500

David J. Byrne, Shareholder and Co-Chair of Stark & Stark's Community Associations group, presented a seminar at the Pennsylvania and Delaware Valley Chapter of the Community Associations Institute's Annual Conference and Expo on June 3, 2008 entitled Collecting Unpaid Fees and Assessments. Mr. Byrne's presentation included a discussion on liens, foreclosures, limited divestiture, mortgage foreclosures, surplus funds and rent receivership.

You can access a copy of Mr. Byrne's presentation materials online here. (PDF)

You can listen to Mr. Byrne's presentation here. (15 MB)

David Byrne to Present at PA CAI Expo & Conference

rdeluca@stark-stark.com (Stark & Stark) — Thu, 22 May 2008 10:32:15 -0500

On June 3, 2008 David J. Byrne, Shareholder and Co-Chair of Stark & Stark's Community Associations group, will present a seminar discussing the collection of unpaid assessments and foreclosures at the Annual Pennsylvania and Delaware Valley Community Associations Institute Conference and Expo in Valley Forge, Pennsylvania.

The seminar is entitled Foreclosure and Collections in Pennsylvania and will begin at 9:00 AM. You can access additional information regarding this and other seminars, as well as a schedule of events for the conference here. Please also visit the CAI website for instructions on how to register for this event.

The ABCs of Pennsylvania's 3407 Certificate of Resale Requirement

mchristensen@stark-stark.com (Megan M. Christensen) — Fri, 28 Sep 2007 08:08:24 -0500

    Statute §3407 of the Pennsylvania Condominium Act (the “Act”) provides that a contract for the resale of a condominium unit by someone other than the developer is unenforceable unless the unit owner furnishes certain information and documents. Accordingly, under §3407(17)(a) when requested, the Association must furnish a Certificate containing the information and supplying the documents necessary to enable the unit to comply with his obligations.

    Thus, unlike its neighboring state, Pennsylvania requires actual participation by the Association when it comes to the resale of a condominium unit. However, it is key for an Association to be mindful that such participation should remain limited to the confines of the Act. Far too often the author of the 3407 Certificate, acting on behalf of the Association, subjects the Association to undue liability by making statements that go beyond its responsibility pursuant to the Act.

    For example, the Act requires the Association to verify the amount of monthly common expenses, any unpaid common expenses or any unpaid special assessment currently due from the selling owner. Mindful of the limiting language of currently due, the Association should be wary not to include information on the Certificate with regard to the possibility of a future increase in the monthly assessment or a future special assessment. While it may seem at the time as a good faith gesture, in the end it only creates confusion amongst the seller and buyer as to whom shall be responsible for payment in the case that such possibility becomes a reality.

    Moreover, an Association should avoid making certain ultra vires statements such as “the Association will not increase its common monthly assessment” or “the Association will not issue a special assessment for the next six months”. Again, while the Association may truly have no intention of having to break such a “promise”, the Association cannot subject itself to the possibility of allowing such an over-reaching statement to prevent it from raising emergency funds when needed.

    Thus, with the above advice in mind we strongly encourage Associations to review their current 3407 policy and assure not only compliance but that same does not create undue liability for the Association or confusion amongst the parties.

Proposed Tax Credit for Condominium and Co-Op Owners Gains Support In Philadelphia

rdeluca@stark-stark.com (Stark & Stark) — Wed, 12 Sep 2007 09:30:26 -0500

Pursuant to New Jersey’s Municipal Services Act, every municipality in New Jersey is required to either provide certain municipal services – such as snow removal, trash collection, recycling and lighting of roads and streets – to condominium and homeowners associations and co-ops within its borders or, in the alternative, to reimburse these communities for such services. The purpose behind the Act is simple – eliminate the double taxation of community association residents. While not unique, New Jersey is one of only a handful of other states that provide for such benefits. Now, other states and individual municipalities are starting to take notice.

Earlier this year, Bill 070073 was introduced in the Philadelphia City Council, which, if enacted, would provide a tax credit for owners of condominiums and co-ops who do not currently receive regular city trash collection, recycling and bulk item collection services. The proposed legislation, sponsored by City Councilmen Jim Kenney and Frank DiCicco, has been gaining support lately as a result of the previous efforts of the City Council and despite the opposition of Mayor John Street, who has refused to comply with a previous Court ruling that required the City to provide no-cost refuse collection services to community associations.

Bill 070073 attempts to remedy the inequities suffered by members of community associations who typically pay the same local taxes as non-association homeowners even though community association members are often denied typical municipal services such as trash collection and recycling. This Bill seeks to eliminate the double taxation problem by reimbursing tax payers in community associations for trash hauling expenses, which are normally privately funded by assessments paid by unit owners to their respective association. The legislation is expected to move forward for a vote before the city counsel in the coming months. The full text of this proposed legislation can be found here.